{"id":4266,"date":"2020-02-18T16:25:00","date_gmt":"2020-02-18T10:55:00","guid":{"rendered":"https:\/\/pitch.link\/blog\/?p=4266"},"modified":"2020-03-07T17:40:20","modified_gmt":"2020-03-07T12:10:20","slug":"valuing-your-saas","status":"publish","type":"post","link":"https:\/\/pitch.link\/blog\/valuing-your-saas\/","title":{"rendered":"Valuing your SaaS"},"content":{"rendered":"\n

This is a complex and often opaque process. There has been a lot written about and discussed. The rule of thumb is that a SaaS that shows definite growth trajectory can expect a 10X revenue x rate of growth x net renewal rate, as post money value, give and take. <\/p>\n\n\n\n\n\n\n\n

David Cummings has written about 5 variables that can possibly provide a more nuanced valuation that is more likely to stick. So you need to include variables like gross margin and market sentiments drawn from Public SaaS companies and their market multiples. <\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Read both posts to get a directional indication of what you can expect. I wonder if there are variance to be factored in at various stages of the company (Series A\/B etc.) or TAM (potential for growth)? <\/p>\n\n\n\n

What is your take? <\/p>\n\n\n\n

Where I learnt this #415 <\/p>\n\n\n\n

5 Variables for a Quick SaaS Valuation <\/p>\n\n\n\n

https:\/\/davidcummings.org\/2020\/02\/08\/5-variables-for-a-quick-saas-valuation<\/a>\/ <\/p>\n\n\n\n

Premium SaaS Metrics Required for Premium SaaS Valuations <\/p>\n\n\n\n

https:\/\/davidcummings.org\/2020\/01\/18\/premium-saas-metrics-required-for-premium-saas-valuations<\/a>\/
<\/p>\n","protected":false},"excerpt":{"rendered":"

This is a complex and often opaque process. There has been a lot written about and discussed. The rule of thumb is that a SaaS that shows definite growth trajectory can expect a 10X revenue x rate of growth x net renewal rate, as post money value, give and take.<\/p>\n<\/p>

Continue Reading<\/span><\/i><\/a><\/div>","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"ub_ctt_via":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[68,69],"tags":[70,78,257],"class_list":["post-4266","post","type-post","status-publish","format-standard","hentry","category-saas","category-what-i-learnt-today","tag-alwayslearning","tag-saas","tag-valuation"],"aioseo_notices":[],"featured_image_src":null,"author_info":{"display_name":"Subhanjan Sarkar","author_link":"https:\/\/pitch.link\/blog\/author\/subhanjan\/"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paX7jg-16O","_links":{"self":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/4266"}],"collection":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/comments?post=4266"}],"version-history":[{"count":0,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/posts\/4266\/revisions"}],"wp:attachment":[{"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/media?parent=4266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/categories?post=4266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pitch.link\/blog\/wp-json\/wp\/v2\/tags?post=4266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}